The Pascagoula democrat-star. (Pascagoula, Miss.) 1878-1920, 1887-08-12
Is Competition the Lie Of Trade?
Stoves and Hardware.
Tho old ~ &. .ir,.r fIrnf itnnn,n ., a 4 I q

Stoves aud Hardware.
The old saying that competition
is the life of trade' needs revamper-
ing. 1t has been worn so thread
bare there is not snficinet sub
stance left to hold it decentIy to.
gether. "COurpetition is the death
of trade" might do very well for a
substitute, with the chances Id IA
vor of being nearer the truth. Com.
petition overstocks the market,
sells its goods for less than cost,
discharges its workmen. There in
not much life in that. Competi-
tion may for time give us some
article that We need at low price,
bat the tendency of 1t is to produce
such an OverstOck as to glut the
market, and cause the goods to be
sold below the actual cost of the
manufacture, thus compelling tac-
tories TO close and workingmen
to lay idle. And who is the gain
erf The manufacturers lose, and
we maintain the consumers also in
the end. There can be no perma.
nent prosperity in a policy that
fills the market to repletion with
unstable goods. and which ulti-
mately leads to depression and
idleness. Prosperity comes when
supplies are ample for all reasona.
BILE requirementswithou overstock-
ing the markets or closing the fac.
tories. No ultimate benefit can ac-
crue to the country at large from
selling any line of goods below
cost. Such a state of things is not
sign OF PROCESS or stability, but on
the contrary is an indication of
weakness, which must eventually
extend to all other Industries, aud
lead to injurious results to all.
Competition with certain well IA
fned limits may be the life OF
trade, but to overstep these limits
iufr0SperOus times, is for c0mpe.
titiou to become an injury. The
present condition Of nail trade lair
ly illustrates the point. -Four or
five years ago the manufacturer of
cut nails was a prosperous busi-
nsSs, but competition increased the
number of mills and machines,
until to day we can manufacture
double tho amount of nails we can
use. The wire nail trade is to-day
n danger or being placed in SIM
lar condition, aud in many other
Industries there is a teverish effort
% expand beyond the limits of
iafety. Much of this is undoubt-
dly due to the speculative tenden-
y that has been so prominent of
ate. Too many industries are
arried on as if they were specula-
ions. During a brisk period in
ny line speculation becomes
ampant, and spectators enter
Iliudly iuto enterprises without
borough and proper examination
t the situation. The competition
esulls in over production and loss
t profits, not Ouly to the manu-
acturer, but to the jObber aud
ealer. 1t is fallacious to say that
! a benefit to one dealer to buy
Nv, or below cost even, ii other
callers can do the same. 1t is
what dealer pays for
Il article if other dealers have to
ay the same price. 1t is the mar.
in of profit be is interested in and
hen markets are over stocked by
yer production caused by compe-
tion, he is never certain of a pro-
t. He may buy low, but he has
0 assurance that others may not
ny still lower aud deprive him of
is legitimate profits. A uniform
rice is what he desires. We hear
uch about the natural course of
ade, but it becomes very unnat-
ral at times through competition.
onopolies are not altogether de-
rable. They have much to an.
yer for, and their methods are
ten open to just criticism, but
lere are points in their favor,
svertheless, aud the restriction OF
in reasonable bounds
one OF their virtues.